Debit Card

AAA

DEFINITION of 'Debit Card'

An electronic card issued by a bank which allows bank clients access to their account to withdraw cash or pay for goods and services. This removes the need for bank clients to go to the bank to remove cash from their account as they can now just go to an ATM or pay electronically at merchant locations. This type of card, as a form of payment, also removes the need for checks as the debit card immediately transfers money from the client's account to the business account.

INVESTOPEDIA EXPLAINS 'Debit Card'

The major benefits to this type of card are convenience and security. Along with the convenience of accessing account funds at anytime it also removes the hassles associated with having to write checks as payment like showing ID and associated fees. Debit cards are also considered to be a safer form of payment as a code is required to access the account funds, while checks can be easily stolen.

RELATED TERMS
  1. Private-Label Credit

    A type of revolving-credit plan managed by a bank or commercial ...
  2. Personal Identification Number ...

    A numerical code used in many electronic financial transactions. ...
  3. Payroll Card

    A type of bank debit card. Payroll cards draw on the user's wages ...
  4. Credit Criteria

    The various financial characteristics that lenders analyze when ...
  5. Checking Account

    A transactional deposit account held at a financial institution ...
  6. Credit Card

    A card issued by a financial company giving the holder an option ...
Related Articles
  1. Credit, Debit And Charge: Sizing Up ...
    Credit & Loans

    Credit, Debit And Charge: Sizing Up ...

  2. Debit Card Fraud: Is Your Money At Risk?
    Credit & Loans

    Debit Card Fraud: Is Your Money At Risk?

  3. Should You Pay In Cash?
    Budgeting

    Should You Pay In Cash?

  4. Your First Checking Account
    Insurance

    Your First Checking Account

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center